Taiwan Commits to Buy U.S. Wheat at Sept. 28 Ceremony

Press Release

Gov. John Hoeven and North Dakota Wheat Commission Chairman Harlan Klein today met a Taiwan Agricultural Trade Goodwill Mission to sign a joint communiqué demonstrating Taiwan's intent to purchase 1.7 million metric tons of U.S. wheat in 2010 and 2011 valued at approximately $425 million. The signing ceremony took place at 10:30 a.m. in the Memorial Hall of the State Capitol in Bismarck.

"North Dakota is a top producer in 14 different major commodities, including spring wheat," said Hoeven. "For years, Taiwan has been an important market for North Dakota wheat, and we appreciate their loyalty. This relationship will remain important in our on-going efforts to expand our export sales and grow our economy."

Participants in the trade mission include representatives of the Taiwan Flour Mills Association, which provides collective buying and shipping services for all 26 flour mills in Taiwan. Representatives of some of the leading mills in Taiwan will be participating in the mission. Ron Lu, director of the U.S. Wheat Associates' (USW) Taipei office, will also be traveling with the trade mission. Lu and USW are responsible for sustaining and growing the market in Taiwan on behalf of U.S. wheat growers. USW is the overseas marketing arm of the North Dakota Wheat Commission

Taiwan is consistently a top five export market for U.S. hard red spring wheat, the predominate class of wheat produced in the state, with average annual purchases of 20 million bushels. Spring wheat accounts for over half of Taiwan's total annual purchases of all classes of U.S. wheat, which presently averages 34.5 million bushels.

Klein says, "The U.S. has a commanding market share in Taiwan, accounting for nearly 85 percent of all wheat imported into the country. U.S. Wheat Associates continues to work with the Taiwan Flour Mills Association to educate and train millers and bakers about using high quality U.S. wheat to meet their needs and the needs of the end users. It is this type of effort that has built demand for spring wheat in Taiwan that has continued to grow over the last 45 years."

The trade delegation was in Washington, D.C. on Thursday, Sept. 24, to sign a letter of intent with U.S. Wheat Associates. They traveled to Kansas before arriving in Bismarck on Sunday, Sept. 27. Following meetings at the capitol today, the group will visit North Dakota Agriculture Commissioner Doug Goehring's farm.

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